The Europe chemical seed treatment market is projected to register a CAGR of 5.2% during the forecast period 2020-2025. Seed Treatments with chemicals are an example of how the seed industry and crop protection industry are innovating for the future of modern agriculture. The regulatory uncertainty of the product approvals and doubts regarding their efficacy and environmental concerns arising from the usage of chemical products has hampered the growth of these products across the world. Within the chemical seed treatment market, the insecticide based seed treatment segment is seen dominating. However, due to cheaper costs, fungicides are used more in quantity, globally. Due to changing weather conditions and through biological mutations, many crop-threatening pests are becoming resistant to many chemical agents in pesticides. However, as the use of a combination of chemical agents showing more success in compacting the pests, there is an increasing drive in the demand for chemicals treatment products combining insecticides and fungicides.

Key Market Trends

Increased Concern Towards Food Security

According to the Euro seed declaration on the food security in Europe, it is seen that the European Union currently relies on about 1/3rd the size of its domestic arable land outside its own territory to ensure European food security. With the population increasing in the region, the demand for food is also projected to increase by 50% thereby creating a need to increase the agricultural output significantly over the coming decades. Hence there is a need to grow food in a more sustainable and efficient manner and ensure that yields per hectare increase and therefore the chemical agents are holding the major segment in the European market for seed treatment to enhance the productivity to meet the food demand in the region. Chemical Seed treatment is more crucial for food security. Treatment of seed with plant protection products like insecticides, fungicides and so on assures seed and plant health by restricting pests and pathogens. This helps to secure crop yield, quality, and safety.

Maize Dominated the Chemical Seed Treatment Market

According to the Euro seed report, Maize seeds among the cereals and grains are mostly treated with chemicals due to increased attack of fungal diseases, insects, and nematodes on seedlings. High costs associated with hybrids and genetically modified seeds is a major factor driving the growth of the seed treatment market, globally. Seed treatment is being increasingly considered by farmers as a mode to protect investments made on good quality seeds, due to an increase in regulatory issues relating to fumigation, as well as the foliar application of pesticides. The cost of seeds is expected to increase, owing to an increase in the demand for high-quality seeds, with desirable agronomic traits. Both companies and farmers are ready to spend on seed treatment solutions, in order to save high-quality seeds. According to USDA estimates of 2017, corn seeds cost about 300% since 1995, while the yield grew by only 35%. Framers are trying to cut down operating costs by selecting seeds that do not require multiple doses of chemicals. The initial protection of these engineered seeds is ensured by using seed treatment products.

Competitive Landscape

The market for chemical seed treatment is consolidated. Many big players occupy a major portion of the market, having a diverse and increasing product portfolio. Various leading seed treatment companies like Syngenta, BASF, and Bayer are operating in these regions and they regularly organize field trials and training sessions to increase the awareness regarding their products, as well as to present the benefits of using seed treatment products.

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